First-Time Homebuyers Incentive Program

What is First-Time Homebuyers Incentive Program?

First-Time Homebuyers Incentive Program is a forgivable loan for homebuyers in Baltimore, Maryland.

• Foundational Baltimore City DPA incentive: $10,000 forgivable second for first-time buyers, 5-year 20%/year forgiveness, 80% AMI cap, Baltimore City only. Pairs with MMP and FHA/VA/USDA/conventional first mortgages.
• $10,000 down payment and closing cost assistance for first-time homebuyers in Baltimore City (formerly $5,000.
• DOUBLED to $10,000 by Mayor Brandon Scott in April 2023). Structured as a 0% interest 5-year forgivable second mortgage, forgiven 20% per year over 5 years of continued owner-occupancy. Formerly known as the Community Development Block Grant (CDBG) Homeownership Assistance Program. 80% AMI household income cap. First-time homebuyers only. Property must be in Baltimore City. Buyer must contribute $1,000+ of own funds. Homeownership counseling certificate from city-approved agency required (valid 12 months). Pairs broadly with Maryland Mortgage Program (MMP) and other FHA/VA/USDA/conventional first mortgages. Foundational stackable Baltimore City incentive that other DHCD bonuses (Direct Homeownership Assistance +$5,000 for renters/disabled households) layer on top of.
• Funding comes from Federal CDBG and Local Government.

Do you have to pay it back?

First-Time Homebuyers Incentive Program is forgiven after 5 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by Forgiven 20%/year over 5 years of continuous owner-occupancy. Prorated unforgiven balance due on sale, transfer, cash-out refi, or non-owner-occupancy within 5 years.
• The assistance is recorded in 2 position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

First-Time Homebuyers Incentive Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

First-Time Homebuyers Incentive Program limits household income to 80% of the area median income, which varies by county and household size.

• Household income at or below 80% AMI for Baltimore HMFA, by household size. Approximate 2026 80% AMI: $68,450 (1-person) to $129,050 (8-person). Verify current at livebaltimore.com/annual-median-income-limits-for-baltimore-city.
• The limit applies to total household income, not only the borrower’s.
• Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

First-Time Homebuyers Incentive Program caps the purchase price as follows: First-mortgage amount cannot exceed FHA loan limit for Baltimore MSA ($731,400 single-family).

• Eligible property types include Single-family detached, Townhome, Rowhouse, Condominium, and 2-4 unit owner-occupied.
• New construction is eligible.
• Manufactured homes are not eligible.

Where does it apply?

First-Time Homebuyers Incentive Program serves buyers purchasing in Baltimore, Maryland.

How do you apply?

Applications for First-Time Homebuyers Incentive Program go through the administering agency, which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program, through Baltimore City-approved homeownership counseling agencies: NHS of Baltimore, Druid Heights CDC, Belair-Edison Neighborhoods, Southeast CDC, GO Northwest, St. Ambrose Housing Aid Center, Diversified Housing Development..

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Apply online via Baltimore Applicant Portal (https://applicantportal.dhcd.baltimorecity.gov). First-come, first-served subject to fund availability. Pre-approval required before closing., and are subject to availability.

3. 3

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.